Inox Leisure Limitedcdn.inoxmovies.com/Downloads/8cc0393e-b4e1-4e1f-84a6-45...INOX –a diversified...
Transcript of Inox Leisure Limitedcdn.inoxmovies.com/Downloads/8cc0393e-b4e1-4e1f-84a6-45...INOX –a diversified...
INOX – a diversified business group with market leadership
2
Privately held
India’s largest cryogenic
engineering company,
amongst the world’s
largest
Manufacturing facilities
in India, US, Canada,
Brazil and China
Listed on BSE and NSE
49% subsidiary of GFL
India’s largest
integrated multiplex
chain
Currently operates 79
properties in 43 cities
comprising of 310
screens and 83,809
seats
Listed on BSE and NSE
India’s largest
manufacturer of
refrigerants,
chloromethanes &
PTFE
Carbon credit revenues
utilized to build strong
businesses
Subsidiaries in 3
countries, JVs in 2
80 year track record of ethical business growth
Diversified, professionally managed business group
22 companies (including two listed, 7 international subsidiaries, and 5 joint ventures – of which 3 international)
10 different businesses
Gross block over Rs 7,000 crores, Gross revenues over Rs 5,000 crores
More than 100 business units across India, employing more than 10,000 people
50:50 joint venture with
Air Products and
Chemicals Inc(USA), a
Fortune 500 Company
India’s largest industrial
gas manufacturer –
around 40 plants across
the country
75% subsidiary of GFL
Fully integrated wind
turbine manufacturer
with state of the art
facilities for nacelles,
blades, towers, and
hubs
India’s fastest growing
and amongst largest
wind farm solutions
provider
100% subsidiary of GFL
Wind farm operator with
around 200 MW of
operational wind farms,
with another 100 MW
under construction,
across 4 different
States
Market leadership across almost all businesses
Indian Movie Exhibition Business
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Immense opportunity for large, organized players
Organized Retail
on Overdrive
Organized retail is expected to grow at a rapid rate of 19-20% CAGR over the next 5 years
o As of 2013, only 7.5% of the $520 bn retail market in India was organized
o Organized retail expected to be 10% share of total retail by 2018.
o Favorable regulatory environment – 51% FDI permitted in multi brand retail
o Real Estate sector more organized – huge development in malls and commercial properties
Large Malls need anchor tenants – strong preference for Multiplexes
Vibrant
Domestic Box
Office
Domestic theatrical accounts for 75% of total film industry revenues in 2013
Box Office collections estimated to grow at 11.4% CAGR from Rs 93 bn in 2013 to Rs 160 bn in 2018
Multiple drivers for box office growth –
o Digital Cinema enabled wide releases Larger box office collections Film Distributors
enjoying large profits Larger investments Quality content pipeline
o Younger demographics and increasing discretionary spends especially on entertainment
o Limited alternative entertainment options
o Movie going is a social activity
Underpenetrated
multiplex market
India is a severely under-served market with low screen density (8 screens / mn vs. 117 in US)
Multiplex screens account for just 25% of total screens
Latent demand in several markets for quality movie going experience
Large Movie
Industry
~ 1000 movies released per annum
~ 5 billion tickets sold annually
Quality content across genres and languages
Source: FICCI KPMG Report 2014; Pulse of Indian Retail Market - EY Report 2014; Research Reports
One of the Largest Multiplex Chains in India
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14 States43 Cities
79 Multiplexes310 Screens83809 Seats
40 million patrons *
TAMILNADU3 Properties | 14 Screens
KARNATAKA 9 Properties | 34 Screens
GOA 1 Properties | 4 Screens
ANDHRA PRADESH 7 Properties | 31 Screens
MAHARASTRA 19 Properties |76 Screens
GUJARAT
6 Properties |25 Screens
RAJASTHAN
7 Properties |22 Screens
HARYANA 3 Properties | 10 Screens S
MADHYA PRADESH 3 Properties | 11 Screens
UTTAR PRADESH 3 Properties | 13 Screens
JHARKHAND 1 Properties | 4 Screens
WEST BENGAL 14 Properties |55 Screens
CHHATTISGARH 2 Properties | 8 Screens
ORISSA 1 Properties |3 Screens
* FY14 including Management Properties
• Track record of aggressive expansion
• Pan India Presence
• Strong project pipeline
One of the Largest Multiplex Chains in India
• Unmatched service and ambience
• State of the art technology
• Premium multiplex properties
• Strong content pipeline
Unmatched Consumer Experience
• Rising footfalls
• High ticket prices
• Highly profitable F&B service
• Focus on other operating income
• By leveraging on brand partnerships
Robust Operating Performance
•Owned Properties
•E-Tax Exemption
Fillips to profitability
Key Value Drivers
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FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14
Track Record of Aggressive Expansion
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On average, added two properties every quarter over the last decade
2 Prop.
8 Screens
3 Prop.
12 Screens
6 Prop.
25 Screens
9 Prop.
35 Screens
14 Prop.
51 Screens
22 Prop.
76 Screens
26 Prop.
91 Screens
32 Prop.
119 Screens
63 Prop.
239 Screens
68 Prop.
257 Screens
74 Prop.
285 Screens
79 Prop.
310 Screens
SURAT
VIZIANAGARAM
KALKA
RAIPUR
JAIPUR
MADURAI
GREATER NOIDA
KOLKATA
MANIPAL
HYDERABAD
NAVI MUMBAI
PUNE
(Amanora)
BHUBANESWAR
UDAIPUR
BHOPAL
LILUAH
SILIGURI
(CC)
Vijaywada
(LEPL)
------------
2 FAME
Properties
VIZAG (CMR)
BANGALORE
(Mantri Sq)
BELGAUM
JAIPUR
(Raja Park)
KANPUR
BANGALORE
(J.P.Nagar)
--------------------
25 FAME Properties
HYDERABAD
SILIGURI
KOLKATA
(Rajarhat)
INDORE
(Central Mall)
THANE
VIZAG
(Beach Road)
FARIDABAD
NAGPUR
(Jaswant Tuli)
BANGALORE
(Swagath)
BURDWAN
BHARUCH
DURGAPUR
JAIPUR
(Crystal Palm)
LUCKNOW
RAIPUR
KOLKATA
(Swabhumi)
VIJAYWADA
DARJEELING
KOTA
NAGPUR
(Wardhaman Nagar)
CHENNAI
JAIPUR
(Bani Park)
KOLKATA
(Salt Lake)
GOA
MUMBAI
(Nariman Point)
KOLKATA
(Elgin Road)
PUNE
VODADARA
BANGALORE
(Magrath Road)
JAIPUR
(Vaishali Ngr)
INDORE
(Sapna Sangeeta)
IPO
Acquisition
of 89
Cinemas
Acquisition
of Fame
India
Includes 6 Managed Properties with 20 screens
Pan India Presence
7
Cities Properties
Well distributed mix of properties
Screens Seats
East, 9West, 16
South, 9
North, 9
East, 18 West, 29
South, 19North, 13
East, 70 West, 116
South, 79
North, 45
East, 18631 West, 33817
South, 19320
North, 12041
Strong Project Pipeline
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FY14
FY15
Sl No City No of screens Launch Date
1 Surat 8 11th Jul 2013
2 Vizianagaram 3 29th Jul 2013
3 *Kalka 3 17th Sep 2013
4 *Raipur 4 5th Oct 2013
5 Jaipur 3 23rd Dec 2013
6 Madurai 5 24th Dec 2013
7 Greater Noida 5 14th Feb 2014
8 Kolkatta 6 7th Mar 2014
9 Manipal 3 31st Mar 2014
Total screens 40
Sl No City No of screens Est. Launch
1 Vizag 5 Q1 FY15
2 Jamnagar 5 Q1 FY15
3 Jalgoan 4 Q1 FY15
4 Gurgaon 3 Q1 FY15
5 Faridabad 3 Q2 FY15
6 Lucknow 4 Q2 FY15
7 Ajmer 3 Q3 FY15
8 Kurnool 3 Q3 FY15
9 Pune 6 Q3 FY15
10 *Bhiwadi 3 Q3 FY15
11 Jaipur 4 Q3 FY15
12 Vijayawada 3 Q4 FY15
13 Thrissur 6 Q4 FY15
14 Kota 4 Q4 FY15
15 Jammu 3 Q4 FY15
16 Bangalore 5 Q4 FY15
17 Goa 4 Q4 FY15
18 Mangalore 8 Q4 FY15
19 Cuttack 4 Q4 FY15
20 Vadodara 3 Q4 FY15
Total Screens 83
*Management properties
Unmatched Service and Ambience
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Ambience World class ambience
Emphasis on safety, comfort and convenience
Video Quality
Setup own high quality DCI Compliant 2K Digital Projection Systems across
locations to ensure world class cinematic experience
High definition picture quality
3D enabled
High frame rate (HFR) ready (can go up to 60 fps)
Audio Quality Early adopters of Dolby ATMOS sound technology
Excellent acoustic systems
Distortion free sound
Programming
Experienced Programming Team
Wide variety of movies catering to different genres and tastes
Theatre management system installed in every unit allows flexibility in
programming
State of the Art Technology
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First multiplex chain in the country to co-develop an Integrated ERP software
Focus on ensuring transparency to all business partners (regulatory agencies and distributors)
End of day data availability allows for performance analysis and better management control
Automated DCR (Daily Collection Reports) sent to regulatory agencies and distributors - no
manual intervention for report generation and hence no room for errors, complete transparency
Setup NOC in Mumbai that enables management team to continuously monitor, control and
report information on digital systems across the country
Real time programming changes
Dynamic on screen ad scheduling from NOC
Premium Multiplex Properties
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PUNE AMANORA KOLKATA QUEST GREATER NOIDA
BHOPAL MUMBAI INORBIT SURAT
Strong Content Pipeline
12Expected Blockbuster Movies Expected Hit Movies
06-Jun-14 HOLIDAY - A SOLDIER IS NEVER OFF DUTY HINDI AKSHYA KUMAR, SONAKSHI SINHA
06-Jun-14 FILMISTAAN HINDI SHARIB HASHMI, INNAMULHAQ, KUMUD MISHRA
13-Jun-14 FUGLY HINDI JIMMY SHERGILL, MOHIT MARWAH, KIARA ADVANI
13-Jun-14 EDGE OF TOMORROW (3D) ENG TOM CRUISE, EMILY BLUNT, BILL PAXTON
13-Jun-14 HOW TO TRAIN YOUR DRAGON 2 (3D) ENG GERARD BUTLER, KRISTEN WIIG, JONAH HILL, JAY BARUCHEL, CATE BLANCHETT
20-Jun-14 HUMSHAKALS HINDI SAIF ALI KHAN, RITESH DESHMUKH, BIPASHA BASU
20-Jun-14 HEAVEN IS FOR REAL ENG GREG KINNEAR, KELLY REILLY
20-Jun-14 THE PURGE 2 ENG FRANK GRILLO, ZACH GILFORD, CARMEN EJOGO
20-Jun-14 22 JUMP STREET ENG CHANNING TATUM, JONAH HILL
27-Jun-14 CREATURE (3D) HINDI BIPASHA BASU, IMRAN ABBAS
27-Jun-14 EK VILLAIN HINDI SIDDHARTH MALHOTRA, RITESH DESHMUKH
27-Jun-14 TRANSFORMERS - AGE OF EXTINCTION (3D) ENG MARK WAHLBERG, NICOLA PELTZ, STANLEY TUCCI, SOPHIA MYLES, BING BING LI
04-Jul-14 FINDING FANNY HINDI ARJUN KAPOOR, DEEPIKA PADUKONE, NASEERUDDIN SHSH, PANKAJ KAPOOR, DIMPLE KAPADIA
04-Jul-14 CHAAR SAHIBZADE (3D) HINDI ANNIMATION
11-Jul-14 HUMPTY SHARMA KI DULHANIA HINDI VARUN DHAVAN, ALIA BHATT
11-Jul-14 DAWN OF THE PLANET OF THE APES (3D) ENG KERI RUSSELL, GARY OLDMAN, JASON CLARKE, JUDY GREER
18-Jul-14 PLANES: FIRE & RESCUE (3D) ENG DANE COOK, JULIEN BROWN
25-Jul-14 HERCULES : THE THRACIAN WARS (3D) ENG DWAYNE JOHNSON, IAN MCSHANE, JOHN HURT
27-Jul-14 KICK HINDI SALMAN KHAN, JACQUELINE FERNANDEZ, RANDEEP HOODA
01-Aug-14 JUPITER ASCENDING ENG CHANNING TATUM, MILA KUNIS, SEAN BEAN
01-Aug-14 BOBBY JASOOS HINDI VIDYA BALAN, ARJAN BAJWA, SUPRIYA PATHAK
08-Aug-14 INTO THE STORM ENG RICHARD ARMITAGE
08-Aug-14 GUARDIANS OF THE GALAXY (3D) ENG ZOE SALDANA, BRADLEY COOPER, VIN DIESEL, BENECIO DEL TORO
08-Aug-14 TEENAGE MUTANT NINJA TURTLES ENG MEGAN FOX, WHOOPI GOLDBERG, ALAN RITCHSON, WILLIAN FICTHNER
08-Aug-14 ITS ENTERTAINMENT HINDI AKSHAY KUMAR, TAMANNAH BHATIA, PRAKASH RAJ, SONU SOOD, MITHUN CHAKRABORTY
15-Aug-14 SINGHAM 2 HINDI AJAY DEVGAN
15-Aug-14 LUCY ENG MORGAN FREEMAN, SCARLETT JOHANSSON,
22-Aug-14 MARDANI HINDI RANI MUKHERJEE
29-Aug-14 THINK LIKE A MAN 2 ENG KEVIN HART, GABREILLE UNION
29-Aug-14 RAJA NATWARLAL HINDI EMRAAN HASHMI, PARESH RAWAL
23%25%
28%32% 33%
27%
23%
28%
Rising Footfalls
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Quality content driving Occupancy rates Expansion driving total footfalls
(millions)
o Convenient locations / Good catchment areas
o Good mix of Hollywood, Bollywood and Regional movies
o“Virtuous cycle” in movie business
Quality content leading to strong box office collections
There were 6 movies over Rs.100 crs.(NBOC) and 2 movies over Rs.200 crs.(NBOC) in 2013
Higher profitability enabling large investments by film producers / distributors
Note: Excludes Managed properties
25.730.7
35.3
10.7 10.8 8.8 8.2
38.6
152
156
160
153
156
163
153
156
High Ticket Prices (ATP)
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ATP Trend
o Inox brand enjoys a premium positioning amongst urban consumers
o Prime locations provide strong pricing power
o Increasing contribution of 3D movies – 3D tickets are priced at a premium of 15-20 % over 2D tickets
Note: Excludes Managed properties
32% 31% 30%27% 27%
25% 24%26%
41 44 47 49 48 51 49 49
Highly Profitable F&B Service
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SPH Growth – overall
o Multiple initiatives on increasing the highly profitable F&B revenues (74% Gross margins)
Unique variety of food with choice of International, Indian and City-Centric special flavors
No menu fatigue - Variety in menu for week days and week ends
Season specific food festivals
Investment in quality machines to serve best pop corn
o Contribution of F&B revenues to net revenues increased from 18% to 21% over last 4 years
Note: Excludes Managed properties
F&B Cost (% of F&B revenues)
172 292 32478 110 146 161
495167
299 323
143 136 190 135
604
Ad Revenue Other Operating Revenue
Focus on Other Operating Income
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Other operating revenues
Significant scope for enhancement of high margin other
operating revenues
Pan India Reach
Premium positioning
Good locations
Several initiatives have been taken up to focus on better monetization
Ad Revenues
Hiked Ad rates
Focus on high value / long term deals
Sales to Leading corporates
DAVP / Government Segment
Off-screen advertising
Other Revenues
Virtual Print Fee
Online booking revenues
Conducting Fee
(Rs million)
Owned Properties
18
City / Property State Screens Seats Total Area (sft)
Multiplex Area
(sft)
Pune Maharashtra 4 1316 140,229 53,189
Vadodara Gujarat 4 1318 109,452 48,622
Nariman Point, Mumbai Maharashtra 5 1323 40,131 40,131
Jaipur Rajasthan 2 787 26,392 26,392
Swabhumi , Kolkatta West Bengal 4 1022 46,204 46,204
Anand Gujarat 3 624 27,871 27,871
Corporate Office Maharashtra - - 16,000 -
o Owned properties in prime locations enable savings in lease expense, thereby boosting EBITDA
E-Tax Exemption
19
E-Tax No. of prop Screens Seats
Average Residual
Period
Full Tax 55 225 59,953
Exempted 11 43 12,039 2 years
Zero Tax 7 22 6,148
• Tax incentives such as e-tax exemptions enable faster recovery of capital cost and
reduced exhibition cost
• E-tax exemption treated as capital receipt – no income tax on the amount
Annexure I - Key Management Personnel
20
Mr. Pavan Jain
Mr. Vivek Jain
Mr. Deepak Asher
Mr. Siddharth Jain
Mr. Haigreve
Khaitan
Mr. Amit Jatia
Mr. Kishore Biyani
Board of Directors Key Management Personnel
Mr. Alok Tandon
(CEO)
Mr. Muralikrishna
(CPO)
Mr. Rajender Singh
(VP – Programming)
Mr. Upen Shah
(CFO)
Mr. Harshavardhan
Gangurde
(VP-Marketing)
Mr. Uday Sakharkar
(VP – Projects)
Mr. Jitender Verma
(CTO)
Ms. Daizy Lal
(COO)
Annexure II Financial Summary
21
Profit and Loss Statement
Rs million FY11 FY12 FY13 Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14 FY14
Net Box Office 2269 3889 4567 1332 1378 1171 1024 4905
F&B Revenues 602 1139 1418 451 447 383 342 1623
Ad Revenues172 292 324 78 110 146 161 495
Other Revenues224 380 359 151 141 205 197 694
Total Revenues3,267 5,700 6,668 2,012 2,076 1905 1724 7717
Distributor Share1029 1803 2099 604 622 545 464 2235
F&B Cost195 349 426 135 132 107 92 466
Payroll Cost 261 394 427 116 117 139 123 495
Other Expenses1417 2344 2700 765 796 830 821 3212
Total Expenses2,902 4,890 5,652 1,620 1,667 1621 1500 6408
EBITDA365 810 1016 392 409 285 224 1309
EBITDA Margin (%)11.17% 14.21% 15.24% 19.48% 19.70% 14.93% 12.97% 16.96%
Depreciation229 375 430 121 128 130 128 507
Interest162 243 267 73 74 66 63 276
Exceptional Items -56 180 25 4 4
Tax-1 27 109 55 59 24 15 153
Minority share in loss 19 57 0
PAT50 42 185 143 148 65 14 369
Annexure IIFinancial Summary
22
Shareholding Pattern
Balance Sheet
Rs million FY11 FY12 FY13 FY14
Networth 3010 3092 3246 3909
Borrowings (LT +ST) 2109 2110 2460 2237
Net Fixed Assets 4950 4892 5950 6346
Current Assets 720 651 820 758
Current Liabilities 1864 1344 1767 1863
Non Current Assets 1563 1235 1364 1476
Non Current Liabilities 250 232 661 571
Gujarat
Fluorochemicals
(Group), 49%
Inox Benefit
Trust, 21%
MF/FII/Banks,
4%
Corporate, 13%
Others, 13%